Frequently Asked Questions


Why do businesses ranging from mom-and-pop operations to Fortune 100 companies finance their equipment? It’s because of access to a wide range of benefits. With equipment financing, you can:

  • Get 100% financing with NO down payment

Unlike requirements of most traditional lenders, you may be able to arrange 100 percent financing of equipment with no down payment. This is key if cash flow is a concern to your business.

  • Maintain cash

Equipment financing is a source of funding that lets you hold onto your cash, or working capital, so it can be used for other areas of your business, such as expansion, improvements, marketing or R&D.

  • Plan expenses for cash flow fluctuations

Financing equipment helps maintain cash flow and greater certainty in budgeting by setting customized rent payments to match cash flow and even seasonal cash flows.

  • Address tax considerations

Tax-oriented leases should produce lower rents since the lessor retains title and depreciation. A tax-oriented lease is a transaction that includes the value of tax benefits. Conversely a conditional sale or loan enhances tax benefits of higher deductions to the lessee/borrower.

  • Keep up to date with technology

Leasing, loans or other financing often enables you to acquire more and better equipment than you could have without financing. Certain leasing finance programs can also allow for technology upgrades and/or replacements within the term of the lease contract.

Pacific Island Financial offers working capital and equipment financing loans from $5,000 up to $500,000. Freight and most soft costs can be included in the amount financed.

These 7 tips and behaviors will go a long way in improving your personal credit score:

  1. Check your credit report once a year to ensure it’s accurate.  Follow up, as needed, with vendors to resolve discrepancies.
  2. Pay all of your bills on time.
  3. Use Outlook or another calendar system to set reminders for due dates.
  4. Stay within the credit limit on your credit cards.  If you need more, call ahead of time to increase your limit.
  5. Don’t apply for a lot of loans or credit cards in a short period of time.
  6. Don’t close credit cards or lines of credit that show a strong on-time payment history.
  7. Avoid bankruptcy and collections by working with creditors on extended or partial payment plans.  (Pay the minimum amount due until a better arrangement is agreed upon by both parties.)

Section 179 of the IRS Tax Code allows businesses to deduct equipment purchases up to $500,000.

The ‘Protecting Americans from Tax Hikes Act of 2015’, or ‘PATH Act’, was passed by Congress and signed into law back in December 2015. The law expanded the Section 179 deduction limit to $500,000 from the previous $25,000.

Section 179 is permanent at the $500,000 level. Businesses exceeding a total of $2 million of purchases in qualifying equipment will see the Section 179 deduction phase-out dollar-for-dollar and be completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.

Bonus Depreciation has been extended through 2019. Businesses of all sizes are able to depreciate 50 percent of the cost of equipment acquired and placed into service during 2015, 2016 and 2017. Bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

IMPORTANT: Section 179 for Current 2017 Tax Year
Section 179 can provide you with significant tax relief for this 2017 tax year, but equipment and software must be financed and in place by midnight December 31, 2017.

Most business equipment qualifies for this deduction including some vehicles and financed equipment.  Equipment purchased in the current year but financed over the next few years is still eligible as a current year tax deduction.  You can check with your tax accountant or simply call us for free to find out more.  You can reach us at 808-378-4433 or toll free at 877-877-9080.

This will depend on your particular situation including internal policies on cash reserves and your overall cash flow situation. Consider some of the reasons many businesses choose financing over paying cash:

  1. Financing Preserves Cash. Financing your next equipment acquisition maintains your cash position to meet ongoing needs like payroll and inventory replenishment.
  2. Financing Helps Maintain up-to-date Equipment. Financing often allows you to obtain the best equipment, including the latest technology, to meet the needs of your business and of your customers.
  3. Financing Preserves Lines of Credit. Keep your credit lines in place for unforeseen events and/or ongoing operating expenses. Financing your equipment doesn’t diminish your ability to tap into existing lines of credit for other business needs.
  4. Financing Matches Revenue with Expenses. Financing over 24 to 60 months allows you to more closely match your revenue streams from your equipment with monthly payments.

Our normal policy is to collect the first and last month’s payments when executing the lease. Your next payment would be approximately 30 days afterwards.

At Pacific Island Financial, we have the ability to work with all types of credit history. We have competitive rates regardless of your credit. Overall pricing adjusts, in part, based on your credit history. Other factors including time in business and the type of equipment acquired may affect the overall pricing.

Our products have repayment terms ranging from 6 to 72 months. At Pacific Island Financial, we’ll work closely with you to ensure that we offer the best terms for your specific situation.

Pacific Island Financial offers competitive pricing for most customers. Each customer’s payment will be determined by several factors including the length of financing term, time in business, cost of equipment or the amount of the loan, type of equipment, business credit history, and personal credit history of the owner(s).

At Pacific Island Financial, We Love Startups. We understand the importance of new businesses getting the equipment needed for future success. We have an equipment financing program that allows start-ups to finance up to $75,000 in new and used equipment.

The short answer is there are no restrictions. You can use your Loan Funds for ANY business purpose. Typical uses include expansion or remodeling projects, inventory replenishment, paying off debt, or ensuring adequate funds are in place to meet payroll.

You can call 808-378-4433 between the hours of 8 am and 5 pm HST. You can also send an email to to request more information for your particular financing needs.